Which Factors Determine Insurance Premiums

Insurance companies take many factors into consideration when they determine a policy premium. Among other influences such as type of industry, equipment usage and security; commercial property liability insurance in Orlando may be all about location, location, location.

While Orlando is inland of both the Atlantic and Gulf coastlines, it may still be subject to the effects of tropical storms and hurricanes. Insurance companies sometimes look closely at the weather patterns of a particular territory when creating area-specific policies.

Beyond where a business is regionally situated, the physical state of the building or office space is also measured. Orlando has a humid climate which can have negative effects on buildings that are not routinely maintained. Older or poorly-constructed buildings may be more susceptible to mold and other harmful toxins; whereas, newer or well-maintained structures may have been designed to combat those influences.

The surrounding neighborhood may also have an impact on what a business owner can expect to pay for insurance. Insurance rates may be affected if a business is in an industrial, tourist or high-crime area. However, businesses that take appropriate security measures for their area may experience a positive adjustment to their premiums.

A location’s effect on insurance premiums varies greatly. Commercial property liability insurance in Orlando is no exception to this rule.